When it comes to buying a new property, as you may already know applying for a mortgage is a key part of the process for most. Although applying for a mortgage can be overwhelming for some, there are a number of simple steps that you can follow to make sure you understand the application process and are well prepared.
Step 1: Contact a specialist broker
The first thing that you should do when applying for a mortgage is to contact a specialist mortgage broker. Finding a specialist broker will be extremely beneficial for you as they will help you to find the right mortgage for you and your new property. They will assess your circumstances and will provide you with a range of different mortgage deals to suit you. Getting professional mortgage advice from a specialist broker is an especially good idea if you are a first-time buyer and have never taken out a mortgage before.
Step 2: Prepare your documents
Once you have found a mortgage and a broker that is right for you it is time for you to prepare your documents to begin your mortgage application. In order to apply for a mortgage, you will need to provide proof of identification and address, details of your employment and up to six months of bank statements. Your mortgage broker will use these documents to assess your eligibility for a mortgage, so you must make sure that they are up to date.
Step 3: Obtain a mortgage in principle
Now that your lending potential and documents has been assessed, you will be provided with a ‘mortgage in principle’ document. This document doesn’t mean that you have been granted a mortgage, but is a statement confirming that a broker is willing to lend money to you based on your credit score and provided documents. To obtain a mortgage in principle, the property that you are wishing to purchase must be evaluated in order to determine the rate of the mortgage in principle. Once you have obtained this document you are now in a great position to make an offer on your new property.
Step 4: Begin your application
If your offer is accepted by the seller of the property, you can now begin your official mortgage application. Your specialist mortgage broker will manage the whole process for you, making the process much easier for you. During the application, a hard credit check will also show up on your credit record and all of your personal information will be assessed again in further detail.
Step 5: Receive your official mortgage
Once your application has been processed and the property has been evaluated by an independent property surveyor, you should then receive your official mortgage offer. If you accept the offer, you will then need to instruct a solicitor to act on your behalf and begin the conveyancing process. If you and the seller of the property are happy, the solicitor will then manage the proceedings from here-on in. Once contracts are exchanged and a completion date is set in place, the property will be legally become yours!
For more information or further advice on applying for a mortgage make sure to get in touch with an advisor at GPD Mortgage Solutions today!